Dish TV Fined Rs 12.74 Lakh by BSE and NSE for Board Quorum Shortages

Dish TV has been fined Rs 12.74 lakh by BSE and NSE due to insufficient board quorum and improper composition of the Board and Nomination and Remuneration Committee. The company states that this non-compliance was beyond its control. The fines imposed are expected to have no operational impact.

Direct-to-Home operator Dish TV has incurred fines totaling Rs 12.74 lakh from BSE and NSE due to an inadequate quorum on its board, as per a company regulatory filing.

Previously, on February 22, 2024, and August 21, 2023, similar notices were issued by the exchanges for unapproved board compositions.

The latest notice dated August 21, 2024, cites improper board composition and non-approval by shareholders as reasons for the fine. The company claims these issues were beyond its control.

Each of the exchanges levied a fine of Rs 6.37 lakh for violations related to Regulation 17(1) and 19(1)/(2) of the Listing Regulations for the June 2024 quarter. Dish TV will pay the fines, which it asserts will not impact its financial or operational activities.

The company has been instructed to notify its promoters of the non-compliance and address the issue in its next board meeting. Responses from the board are to be communicated back to the exchange.

According to Dish TV, its current board consists of six members, while Subhash Chandra's promoter group, holding a mere 4.04% share, remains entangled in a board reconstitution dispute with YES Bank, which has sold its 24.2% stake to JC Flowers Asset Reconstruction Pvt Ltd. Past shareholder dissent has also led to the rejection of key board proposals.

(With inputs from agencies.)